HSA funds never expire, so if you contribute to one of these accounts in the new year, you can use your money in 2022 to cover near-term medical bills or reserve that money for your senior years. Any HSA funds you don’t use immediately can be invested for added growth, and withdrawals are tax-free, as long as that money is used for healthcare expenses.
Furthermore, once you turn 65, you can take HSA withdrawals for any purpose and avoid penalties. So your HSA could serve as your backup retirement-savings plan.
The only catch is that to participate in an HSA, you must be enrolled in a high-deductible health insurance plan. In 2022, that means having an annual out-of-pocket deductible of $1,400 or more for self-only coverage and $2,800 or more for family level coverage.
Maybe you haven’t set as much money aside for retirement as you would’ve liked by now. But a new year means a whole new opportunity to better your long-term financial outlook. And if you make these moves, you can get yourself back on track in no time.
The $16,728 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.